Information for Employers
Employers concerned about liability related to employment of international students in the U.S. due to complicated federal laws governing non-citizens may benefit from the following information on how international students may work legally in the U.S.
Getting employment authorization for international students to work in the U.S. is not as difficult as many employers think. Most international students in the U.S. are in a non-immigrant classification of F-1 or J-1. These classifications do permit employment under certain conditions.
Students in F-1 status are eligible for the following types of employment:
- On-campus employment at the school that issued their Form I-20
- Practical Training – both Curricular Practical Training (CPT) and Optional Practical Training (OPT)
- Employment Authorization granted for Economic Hardship
- Employment with an International Organization as designated by the government.
Students in J-1 status are eligible for the following types of employment:
- On-campus employment at the school that issued their Form DS-2019, with special permission from the school’s Responsible Officer.
- Academic Training
Understanding Practical Training
Students in F-1 status may be authorized for off-campus employment under Practical Training, authorization for employment in areas related to a student’s academic field of study. To qualify for Practical Training, students must complete one academic year and be in F-1 status. Below are descriptions of the two types of Practical Training – CPT and OPT.
Curricular Practical Training
CPT can be issued for an internship in a position related to a student’s field of study. Employment under CPT must be considered “an integral part of an established curriculum.”
At Rollins College, Curricular Practical Training can be issued for:
- An academic internship that is an integral part of the liberal arts curriculum. Academic Internships must earn college credit.
- An internship required by a particular major or degree program.
- An internship approved by the Center for Career and Life Planning or the Crummer Career Resource Center that is for-credit or not-for-credit and is directly related to a student’s field of study.
CPT is authorized by the school, not the U.S. Citizenship and Immigration Service (USCIS). Authorization is recorded in the Student and Exchange Visitor Information System (SEVIS) and printed on the student’s Form I-20. The authorization on the Form I-20 includes the name and address of the company and start and end dates of authorization.
Optional Practical Training
OPT is employment authorization for work directly related to a student’s field of study, typically used following the completion of a degree or the earliest date that a student finishes all coursework and projects, thesis, or dissertation for degree.
Students can use OPT in the following categories:
- Pre-completion of studies when school is not in session or while school is in session, for training not exceeding 20 hours per week.
- Post-completion of studies full-time after completion of degree.
OPT must be applied for with U.S. Citizenship and Immigration Service with a recommendation by the school. It can be authorized for up to 12 months. OPT can be a combination of pre-completion and post-completion OPT. If a student participates in CPT and accumulates 12 months of full-time CPT, the student will not be eligible for OPT.
The application process can take 3 weeks to 3 months, depending on processing times. Students may NOT begin employment until receipt of an Employment Authorization Document (EAD) which indicates start and end dates for the OPT authorization.
STEM OPT Extension
OPT may be extended an addition 24 months for students with degrees earned in Science Technology Engineering or Mathematics from institutions of higher education in U.S. Students must apply with the U.S. Citizenship and Immigration Services (USCIS). If approved, they will receive a new Employment Authorization Document (EAD) authorizing the extension.
Eligibility
The Department of Homeland Security authorizes STEM OPT extensions to F-1 students once per degree level (i.e., bachelor's, master’s, or doctorate). Eligible students may only request the STEM OPT extension twice during their academic career. Students are only eligible for a second STEM OPT extension after earning a second qualifying degree, at a higher education level. The STEM OPT extension may only be requested while participating in an initial period of OPT. STEM OPT is only available for employment with an E-Verify employer.
Academic Training
Exchange students typically study in the U.S. in J-1 non-immigrant status.J-1 students are eligible for Academic Training, employment authorization for employment considered to be a part of their academic objectives. It is approved by the Responsible Officer at the institution that sponsored their immigration status. Academic Training cannot be issued for more than 18 months or the duration of their program, whichever is shorter. Students must request Academic Training based on an offer of employment BEFORE the end date of their program.
Employer Responsibility for Hiring
There is little paperwork for an employer to hire F-1 or J-1 status students. Paperwork is handled by the students, school, and USCIS, except for STEM OPT extension which requires some paperwork from employer. For CPT and Academic Training, the school issues authorization once a student is offered the position. The student can begin work on the start date of CPT after the Form I-20 is issued. OPT authorization is applied for through the USCIS typically before students have found employment.
Continuing Employment after the Practical / Academic Training Period
Federal regulations require that employment terminates at the end of the authorized CPT, OPT, or Academic Training. Students continuing their program of study may request an extension of CPT if still eligible. If employers wish to keep an employee who is ending their post-completion OPT, they can sponsor the employee for an H-1b work visa.
The H-1b temporary work visa requires sponsorship of an employer and must be for a professional-level position, one that typically requires the minimum of a bachelor’s degree. Individuals may work in the U.S. for a maximum of six years with the H-1b visa. This visa is employer specific but can be transferred to another employer through a petition made to the USCIS.
Students with an approval for H-1b status effective October 1 may be granted an extension of their OPT to bridge the time between when OPT ends and H-1b begins.
U.S. tax requirements
Unless exempted by a tax treaty, F-1 and J-1 students earning income are subject to applicable federal, state, and local income taxes. Information on tax treaties is available in the Internal Revenue Service Publications 519, U.S. Tax Guide for Aliens, and 901, U.S. Tax Treaties.
Generally, F-1 and J-1 students are exempt from Social Security and Medicare tax requirements. If an F-1 or J-1 student is considered a “resident alien” for tax purposes, Social Security and Medicare taxes should be withheld. Chapter 1 of Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens explains how to determine the residency status of international students.
Frequently Asked Questions
Is it illegal to hire international students if they don’t have a green card?
No. Federal regulations permit the employment of international students in F-1 or J-1 status within certain limits. These classifications allow students to work in jobs related to their major field of study under the auspices of CPT, OPT, or Academic Training.
Does it cost a lot of money and involve a lot of paperwork?
No. The only cost to an employer hiring international students is the time and effort to interview and select the best candidate for the job. The international student office handles paperwork involved in securing the work authorization for F-1 and J-1 students. In fact, a company may save money by hiring international students because the majority are exempt from FICA and Medicare tax requirements.
How long can international students work in the U.S. with their student visa?
F-1 students are eligible for Curricular Practical Training before completing their studies, as well as an additional 12 months of Optional Practical Training, either before or after completion of their degree.J-1 students are usually eligible to work up to 18 months or the length of the program, whichever is shorter.
Do international students need work authorization before I can hire them?
No. International students must have work authorization before they BEGIN actual employment, but not before they are offered employment. In fact, for CPT and J-1 Academic Training, the student must have the employment offer before the work authorization can be issued.
What does work authorization look like?
For CPT, the authorization appears on page 2 of the Form I-20 and will be a notation with the employer’s name and address.For OPT, the student will receive an Employment Authorization Document (EAD), which is a card with the student’s name, date of birth, gender, photo and authorization dates.The Academic Training will appear on the J-1 student’s Form DS-2019.
What if I want to continue to employ international students after their CPT/OPT/Academic Training work authorization expires?
An employer can hire eligible international students to continue to work for them using the H-1b temporary work visa which can be granted for up to six years. This classification is available for workers in professional level positions. It requires an application by the employer with the USCIS and will need some proper planning and the advice of an immigration attorney.
Does an employer have to prove that international students aren’t taking jobs from qualified Americans?
No. U.S. employers are not required to document that a citizen of another country did not take a job from a qualified American if that person is working in F-1, J-1 or H-1b status. Employers must document that they did not turn down a qualified American applicant for the position only when they wish to sponsor a foreign national for permanent resident status (green card).
References
The Code of Federal Regulations (CFR) Title 8 and Title 22 govern the regulations on F-1 and J-1 non-immigrant classification employment.The citation numbers are:
F-1 students:8CFR 214.2 (f)(9)&(10)
J-1 students: 22CFR 62.23 (f)
The CFR is available at www.gpo.gov/fdsys.
Hiring international students and graduates has many benefits for employers. The following article provides a great overview of these benefits - Why Employers Should Hire International Graduates.